Workers who work overtime on ordinary work days should be paid 1.5 times the hourly pay for the first hour of overtime worked, and 2 times the hourly pay for each additional hour worked.
Hourly wages are calculated by multiplying 1/173 times the monthly wage.
Where monthly wages are comprised of basic wages and fixed allowances, 100% of the monthly wage is included when calculating overtime wages. If monthly wages also include non-fixed allowances and the basic wage plus the fixed allowance is less than 75% of the total wage, the monthly wage used to calculate overtime payments is 75% of total wages.
Workers paid by piece rate also should be paid overtime rates. The monthly wage for piece rate workers is determined based on the average wage paid over the prior 12 months.
Employers must provide meals and drinks of at least 1,400 calories to workers who work overtime for three hours or more.
Example 1: Hani is paid a basic wage of IDR 750,000 plus a fixed allowance of IDR 250,000, so her monthly wage is IDR 1,000,000. Hani’s hourly wage is 5780.35 (1/173 times IDR 1,000,000). If Hani works two hours of overtime on a regular workday, her correct overtime pay is:
IDR 8,670.52 (IDR 5,780.35 x 1.5 for the first hour of overtime)
+ IDR 11,560.69 (IDR 5,780.35 x 2 for the second hour of overtime)
= IDR 20,231.21 (total overtime pay for the two hours of overtime)
Example 2: Soni is paid a basic wage of IDR 600,000, a fixed allowance of IDR 100,000, and an unfixed allowance of IDR 300,000, therefore his total monthly wage is IDR 1,000,000. Soni’s hourly wage is Rp 4,335.26 (1/173 times IDR 750,000, which is 75% of his monthly wages because his basic wage plus fixed allowance is 70% of the total monthly wages). If Soni works two hours of overtime on a regular workday, his correct overtime pay is:
IDR 6,502.89 (IDR 4,335.26 x 1.5 for the first hour of overtime)
+ IDR 8,670.52 (IDR 4,335.26 x 2 for the second hour of overtime)
= IDR 15,173.41(total overtime pay for the two hours of overtime)
Employers also must pay the following correct rate for all overtime hours worked on weekly rest days and national holidays, as follows:
- If 40 hours of regular work per week is implemented in six workdays:
- If 40 hours of regular work per week is implemented in five workdays:
|Hour Worked Overtime||Overtime Pay (times normal rate of pay)|
|1st – 8th hour||2 x|
|9th hour||3 x|
|10th – 11th hour||4 x|